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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
- Forex volatility Prices are at fresh yearly lows- The US Dollar and the Japanese Yen tend to do poorly in quiet markets- Our sentiment-based trading strategies are positioned to sell US Dollar, JPY

Forex volatility prices have fallen to fresh yearly lows, and our sentiment-based trading strategies remain well-positioned to sell USD and JPY weakness.

Our sentiment-based trading strategies have done well selling both the Dollar and Yen through recent price action, and we believe the Momentum2 trading system remains in a good position to capitalize on further Greenback and Yen declines. In fact, we believe there are 3 key reasons in favor of further Japanese Yen weakness—even against the US Dollar.

Forex Volatility Prices Fall to Yearly Lows, Favoring USD and JPY Weakness

forex_strategies_sell_US_Dollar_and_Japanese_Yen_body_Picture_1.png, Dollar and Japanese Yen Likely to Fall Further For a Simple ReasonSource: OTC FX Options Prices from Bloomberg; DailyFX Calculations

Given our especially-bearish outlook on the Yen and modestly negative forecast for the US currency, some of the best trade opportunities in our opinion are in the cross rates—EURJPY and GBPJPY in particular. Those views are reflected in the strategy bias table shown below. .

Quiet market conditions should likewise favor the range-trading Range2 system, but we would avoid attempting to range trade the JPY and instead will focus on USD pairs.

See full detail on our trading biases in the table below, and sign up for e-mail updates via my distribution list for any changes.

DailyFX Individual Currency Pair Conditions and Trading Strategy Bias

forex_strategies_sell_US_Dollar_and_Japanese_Yen_body_Picture_2.png, Dollar and Japanese Yen Likely to Fall Further For a Simple Reasonforex_strategies_sell_US_Dollar_and_Japanese_Yen_body_Picture_3.png, Dollar and Japanese Yen Likely to Fall Further For a Simple ReasonAutomate our SSI-based trading strategies via Mirror Trader free of charge

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